The year in review for landlords Landlord Law Conference Sam Madge-Wyld 19 May 2017
2016/17 Brexit / forthcoming election The Housing White Paper Immigration Act 2016 Housing and Planning Act 2016 Caselaw Edwards v Kumarasamy (disrepair) Short-term lets McDonald v McDonald (Article 8) Tenancy deposit county court cases High Court enforcement of possession claims 2
Brexit / forthcoming election So far of little consequence to landlords Proposal of banning letting agent fees in White Paper Will possibly impact on who has right to rent Will it be used as further justification for regulating private rented sector? Or it will hold up the implementation of existing legislation and the white paper? Watch this space. 3
Housing White paper We will consult early this year, ahead of bringing forward legislation as soon as Parliamentary time allows, to ban letting agent fees to tenants and mandate money protection for letting agents (4.32-4.34). Considering whether to mandate electrical safety checks for rented properties (4.34). Plans to extend mandatory licensing for HMOs occupied by five or more people from more than one household; flats above and below business premises (4.34). Promote longer-term tenancies in private rental homes delivered by housing associations and institutional investors and local housing companies owned by local authorities (4.35). 4
Housing and Planning Act 2016: abandonment Landlords can recover possession of abandoned assured shorthold tenancies Fiendishly complicated Must serve four notices At date of three notices must be two months or eight weeks or arrears Tenant not responded to any of the notices Not yet in force (possibly Autumn 2017). 5
Housing and Planning Act 2016: banning orders (1) Part 2 concerns banning orders Was due to be brought into force in Autumn 2017 Local authority can apply against a landlord or letting agent convicted of a banning order offence for a banning order A banning order may prohibit a landlord or letting agent from letting housing in England, engaging in lettings agency or property management work. First-tier Tribunal has discretion to decide whether to make one. 6
Housing and Planning Act 2016: banning orders (2) Banning order offences are likely to be: 7 a) Unlawful eviction or harassment contrary to the Protection from Eviction Act 1977 or the Criminal Law Act 1977. b) Failure to comply with an improvement notice, prohibition notice or emergency prohibition order served under Housing Act 2004. c) Offences under Housing Act 2004 in relation to HMOs or Pt 3 houses. d) An offence under Gas Safety (Installation and Use) Regulations 1998, reg 36. e) An offence under Regulatory Reform (Fire Safety) Order 2005, art 32. f) A proposed offence of letting agents charging fees to tenants. g) Breach of Immigration Act 2014. h) Other serious criminal conduct.
Housing and Planning Act 2016: banning orders (3) Placed on database of rogue landlords Breach of banning order will be a criminal offence Liable to an unlimited fine, imprisonment of up to six months or a civil penalty of up to 30,000 8
Housing and Planning Act 2016: rent repayment orders Rent repayment orders for breaches of: Section 6(1), Criminal Law Act 1977, i.e. violent entry onto premises, Section 1(2), (3) or (3A), Protection From Eviction Act 1977, i.e. eviction or harassment of occupiers, Sections 30(1) and 32(1), Housing Act 2004, i.e. failure to comply with an improvement notice or prohibition order, Section 21, Housing and Planning Act 2016, i.e. breach of banning order: s.40, HPA 16. In addition to existing rent repayment orders in respect of breach of mandatory, additional and selective licensing. 9
McDonald v McDonald [2016] UKSC 28 Article 8 cannot be raised as a defence to a s.21 possession claim Also unlikely to apply to Ground 8 possession claim 10
Tenancy deposit county court cases Yeomans v Newell Bali v Manaquel Company Limited Chalmiston Properties Ltd v Boudia What happens if deposit is passed to new agent? 11
High Court enforcement A writ of possession will not be issued without the permission of the court other than where the claim for possession was issued against trespassers or was in respect of mortgaged land. Some HCEOs had used N293A to transfer case to High Court and apply for warrant without permission. Senior Master Fontaine issued a practice note Queen s Bench Division Enforcement Section will not accept Form N293A for transfer to the High Court for enforcement of a possession order of the County Court other than for possession orders against trespassers. 12
Contact Sam Madge-Wyld sam.madge-wyld@ardenchambers.com 26 April 2017 13